Buoyed by the rise in US markets on strong home and auto sales the Asian and Indian markets soared on Thursday. The Nifty regained the 5,100 mark to close at 5,110.50 up 90.65 points whilst the Sensex was up 280.49 points at 17,022.33.
The markets are going on global data said Mr R. Murali Krishnan of Ambit Capital like the good home sales and auto numbers that came out of the US. Metals stocks will see a good bounce back because though demand from China will be less as it tries to cool down its overheated economy, there could be growth in Europe.
The metal index was up 10.80 per cent on Thursday.
The PSU stocks index saw the biggest gains up 11. 62 per cent followed by metals, the bank index was up at 6.80 per cent with most of the smaller banks doing well.
After the merger of the Bank of Rajasthan with the ICICI Bank there is hope of merger of the smaller banks with bigger banks before the new bank licencing policy come in, said stock market consultant Mr S. P. Tulsian.
Telecom stocks continued to attract a lot of attention from investors. Out of the frontline three telecom stocks RelCom and Idea gained due to sustained demand. The front line IT stocks was also in good demand despite uncertainties of EU zone, but were up on a weak rupee, said Mr Alex Mathews of Geojit BNP Paribas.